Prepaid Debit Card Basics

If you are looking for information regarding prepaid debit cards, then you have surely stumbled upon an excellent article. Below we will discuss some of the basic features and characteristics of prepaid debit card programs.

Basic Facts About Prepaid Debit Cards

1.Prepaid debit cards have unique characteristics. A prepaid debit card is actually a combination of a regular credit card and a traditional debit card program. How is this possible?

As we all know, debit cards are designed in such a way that they require cardholders to load money onto them, before they can be used in making purchases as well as in paying bills and other expenses. This is also true about prepaid debit cards. Before they can be used in card transactions, both offline and online, they need to contain first adequate funds that will serve as the balance that cardholders can use in paying for the items and services they need.

Also, prepaid debit cards function just like regular credit cards. In what way? Well, they are normally accepted as great substitutes for credit cards in commercial establishments that rely on card transactions. Prepaid debit cards are even accepted in stores and online shops which recognize and accept credit cards but not debit card programs.

2.Prepaid debit cards are also known as credit cards for bad credit. Since issuers of prepaid debit cards do not run credit checks on their prospective cardholders, consumers can receive the plastic cards they need, regardless of their credit scores. So, even if a consumer may possess poor credit ratings, he can still be granted the prepaid card he intends to use in making purchases and in paying his bills and expenses. This is the reason why prepaid card accounts are also considered as credit cards for bad credit.

3.Prepaid cards cannot help consumers repair bad credit. Despite their many beneficial features, prepaid card accounts cannot help consumers repair bad credit history. This is because in these card programs, cardholders do not receive credit lines from lenders and credit firms. Instead, the consumers themselves are the ones loading money onto their prepaid card accounts. So even if a consumer will resolve to responsibly manage his credit card for bad credit he will soon discover that his efforts did not have any impact on his credit profile and that they did not even help him repair his bad credit standing.

We hope that this short discussion helped you learn some basic facts about prepaid debit cards.

About the Author

Tara Tiemann is a credit analyst for which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

About Liz Roberts

Liz Roberts is the new credit specialist for Go-Prepaid. If you are on a budget, we can get you discounted cell phone service from Sprint, Verizon and T-Mobile! NO CREDIT CHECK ! Using a prepaid services can save you a TON of money! Follow our blog to find out how!

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